Sodium Propionate Price Trend and Forecast

Sodium Propionate Regional Price Overview

Get the latest insights on price movement and trend analysis of Sodium Propionate in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Sodium Propionate Price Trend for the Q3 of 2024

Asia

In Asia, the sodium propionate market faced mounting challenges as China imposed anti-dumping duties on propionic acid imports from the United States. These duties, set to last five years, created a significant shift in global trade dynamics. China, being a major player in the propionic acid and sodium propionate market, saw domestic manufacturers scrambling to secure alternative sources of raw materials, as U.S. supplies became more expensive and less accessible. This created a twofold impact: on one hand, domestic production costs increased, while on the other, producers in other parts of Asia were presented with an opportunity to fill the supply gap.
 

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Asian manufacturers of sodium propionate, especially in countries like India and Japan, saw increased demand as buyers looked for alternatives to the now pricier Chinese and U.S. products. However, despite the opportunities, the overall market sentiment remained cautious, with manufacturers wary of overcommitting to production increases given the ongoing uncertainties. The food industry, particularly in China, was impacted by the higher costs of sodium propionate, leading to price adjustments in the market.

Europe

In Europe, the sodium propionate market was similarly affected by the global shifts in raw material supply chains. European producers of propionic acid and sodium propionate, particularly those in countries like Germany and the Netherlands, benefitted from the trade restrictions imposed by China. As the European Union was not subjected to the same anti-dumping measures as the U.S., European manufacturers saw increased demand from global buyers seeking to avoid the higher costs associated with U.S. imports. However, despite the potential for growth, European producers were cautious.

Rising energy costs and logistical challenges, particularly those linked to ongoing conflicts in key trade routes, made it difficult for manufacturers to ramp up production quickly. Additionally, the food and pharmaceutical industries in Europe, which heavily rely on sodium propionate, were forced to reevaluate their sourcing strategies. Some food producers turned to alternative preservatives, while others chose to pass on the higher costs to consumers, leading to price increases in various food products.

North America

North America faced its own set of challenges in the sodium propionate market. The U.S., one of the largest exporters of propionic acid, was directly impacted by China’s anti-dumping duties. U.S. producers of sodium propionate faced higher production costs as a result of increased raw material prices and limited export opportunities to China. This led to a recalibration of the supply chain, with U.S. manufacturers seeking new markets in Europe and other parts of Asia to offset the loss of Chinese buyers. The food industry in the U.S. was hit particularly hard, with smaller food manufacturers struggling to cope with the rising costs. Some turned to alternative suppliers, while others chose to reformulate their products to reduce their reliance on sodium propionate.

Analyst Insight

According to Procurement Resource, the price trend of Sodium Propionate is likely to be guided by the constant changes in the market sentiments of the food industries and surging cost of raw materials.
 

Sodium Propionate Price Trend for the Q2 of 2024

Asia

In China, which is one of the primary producers and exporters of sodium propionate, the market witnessed a notable price reduction towards the end of the second quarter after a largely stable trend in previous months. Firstly, easing geopolitical tensions facilitated smoother trade flows, improving the availability of sodium propionate cargoes and reducing previous supply constraints.

Secondly, a decline in both domestic and international demand reduced upward price pressures. As manufacturing plants scheduled shutdowns from late June, market players were pressured to destock existing inventories to prevent damage, particularly to heat-sensitive powdered sodium propionate products. This combination of improved shipment availability and ample domestic stock led to significant price reductions.

Europe

In Germany, the market dynamics mirrored those in the U.S. and Asian countries, with a noticeable decrease in sodium propionate prices. The region faced similar supply pressures from increased global competition and lower production costs in exporting countries.

The combination of excess supply from destocking activities and reduced demand from buyers anticipating further price drops contributed to the overall market weakness. As, throughout the second quarter, the sodium propionate market remained weak amid pricing consolidation, raising doubts about the market's near-term ability to regain upward pricing momentum.

North America

In the U.S., changing global supply trends and domestic market conditions played a critical role in driving prices down. The lower production costs in key manufacturing and exporting countries increased competition in the domestic markets, and the influx of cheap Chinese imports further stained the market momentum.

Additionally, higher export prices prompted U.S. buyers to delay new purchases, hoping for further price declines, which intensified the supply-demand imbalance and put additional downward pressure on prices. The manufacturing sector thus engaged in decreasing these stockpiled inventories to cut storage costs and mitigate product spoilage risks, flooding the market with excess supply and reducing buyers' motivation to pay higher prices.

Analyst Insight

According to Procurement Resource, the price of Sodium Propionate is estimated to be negatively affected by the supply-demand imbalance of the global markets as the trading sectors are reporting the reluctance of downstream industries and reduction of bulk purchases of the commodity.
 

Sodium Propionate Price Trend for the Q1 of 2024

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Asia

Standing parallel to the global sodium propionate market, Asian sodium propionate prices also witnessed a trend of increasing prices due to its critical role in various industries like food, pharmaceuticals, and agriculture. China, a major producer, and exporter of sodium propionate, started the quarter on the lower end; however, as the quarter progressed, the dynamics of the market improved tremendously, supporting an uptrend in the prices of sodium propionate.

Post-Lunar New Year and Spring Festival holidays, a surge in bulk orders from both domestic and international markets was observed, raising market confidence as production facilities resumed operations. Additionally, dwindling sodium propionate inventories in China, coupled with heightened demand, further fueled the price surge.

Europe

Sodium propionate's importance as a preservative across various industries drove its demand dynamics during Q1 of 2024 in European countries. Its versatility in applications spanning food and feed sectors to industrial domains like plastics and materials production further expanded its consumer base. This surge in demand was also propelled by factors such as robust economic conditions, supply chain disruptions, geopolitical tensions, and rising raw material costs.

The spike in propionic acid prices in the middle of the first quarter further elevated sodium propionate production cost, giving a boost to the price trend of sodium propionate. Additionally, the ongoing challenges in the trading routes due to the geopolitical tensions led by the Israel-Hamas crises and rising sanctions on Russian imports also supported the uptrend in the market projections of sodium hypochlorite in the first quarter.

North America

The United States witnessed a slow and gradual rise in sodium propionate prices, influenced by several factors during Q1 of 2024. The warmer weather conditions since January stimulated economic activity, but disruptions in shipping routes, notably in the Red Sea region, elevated the shipping costs and delays, impacting the supply chain.

With heavy reliance on China as a primary exporter, the US faced heightened freight charges, raising the price quotation of sodium propionate imports. Additionally, rising prices of the raw material, propionic acid, further inflate production costs, supporting the upward trend in sodium propionate price. The traders also noticed a deficit in the domestic production volumes as many of the production plants underwent unprecedented maintenance shutdowns, further supporting a surge in the price trend of sodium hypochlorite.

Analyst Insight

According to Procurement Resource, the price trend of Sodium Propionate is expected to register a slow and gradual improvisation in the overall market sentiments as the downstream demand and rising cost of feedstock prices are likely to support the northward movement of sodium propionate price trend.
 

Sodium Propionate Price Trend for the October - December of 2023

Asia

Since sodium propionate is produced using feedstocks such as sodium hydroxide and propionic acid, any minor fluctuation in the latter is readily mimicked in the former. The Chinese sodium propionate price trend showcased some positive movement in the market; however, the Indian domestic market was mostly observed to be wavering at the lower end of the price curve.

The most prominent usage of sodium propionate comes from the preservative industry, particularly in the animal feed and food sectors. However, the market offtakes from the aforementioned industries were feeble and lacked the supplier’s interest. Overflowing inventory levels put added pressure on sodium propionate prices. Overall, low swinging price trend were witnessed during the final three months of the year 2023.

Europe

The European market sentiments for sodium propionate were influenced heavily by the Asian market during the final quarter of 2023. The prices were observed to be dwelling on the lower side of the price graph. The supply chain obstacles created because of the Israel-Hamas conflict also had a role in the wavering price patterns. Overall, dull market sentiments were observed in Q4’23.

North America

The North American sodium propionate market performance was not much different from its Asian and European counterparts as the price trend were observed to fluctuate within a limited scope here as well. The general market sentiments varied throughout the three months; the lowered demands, difficult logistics, and supply routes amid high inflation rates further complicated the market dynamics.

Analyst Insight

According to Procurement Resource, Sodium Propionate price trend are expected to follow a similar trajectory in the coming months as the existing inventory stocks will likely be able to cater to the immediate/current demand projections.
 

Sodium Propionate Price Trend for the July - September of 2023

Asia

Sodium Propionate price analysis for the Asian region reported an underwhelming performance during the third quarter of the year 2023. With mild reverse tribulations, the price graphs were mostly tilted downwards.

The feedstock materials propionic acid and sodium hydroxide provided some valuable upstream cost support even though the trend suggest otherwise; similarly, the demands were also low to moderate but could not influence the sodium propionate market trend in a very positive manner. Existing unused inventory stocks had the biggest influence on the sodium propionate prices.

Since the Chinese industries have been struggling for a long time to stand back to the pre-COVID levels, the consumption of sodium propionate has been on the lower side, especially from the chemical industries. Moreover, because of the acquired skepticism about outside food during the pandemic times, the sodium propionate demands from food-preserving industries also tumbled. This led to an excess growth of stockpiles and ultimately resulted in the crashing of market rates. The suppliers were forced to discount the sodium propionate prices in order to facilitate positive product movement.

Europe

The European market sentiments mimicked that of its Asian counterpart. The sliding freight and crude oil costs, coupled with low demands and overstocked inventories, affected the pricing fundamentals. Overall, the market performance has been majorly disappointing during the discussed span of Q3’23.

North America

The American sodium propionate market could not behave in a very different manner than the global markets; the prices slid down consistently in the region. The high inflation amidst the economic downturn affected the market trend. Overall, muted market sentiments were observed.

Analyst Insight

According to Procurement Resource, not much improvement is expected for Sodium Propionate price trend in the coming months since the economic uncertainties are still lingering.
 

Sodium Propionate Price Trend for the First Half of 2023

Asia

The price trend of sodium propionate inclined in the first quarter of 2023 as the raw material costs rose significantly, positively impacting the sodium propionate prices. Another major factor for the rise in prices was the positive market momentum of the Chinese pharmaceutical sector and consistency in the number of orders from domestic and international buyers.

In the second quarter, the market sentiments of sodium propionate declined with falling demand from the downstream industries. The lower number of inquiries, along with high uncertainties in the feedstock market, further aided the downward movement of the sodium propionate price trend.

Europe

The European market in the first quarter of 2023 witnessed a rising trajectory. The market dynamics of this region were almost similar to that observed in Asia-Pacific. The prices in the first quarter were supported by higher trade volume, stable supply-demand dynamics, and rising costs of raw materials. As observed in the Asia Pacific region, the trend plunged in the second quarter of 2023.

The demand from downstream industries and declining costs of raw materials negatively impacted the sodium propionate market. In addition, strict regulations over the energy prices by the government for the revival of the European economy forced the manufacturers to decrease their production outputs and eventually led to the decline in the price trend of sodium propionate.

North America

In the first quarter, the prices of sodium propionate gradually inclined due to high demand from the pharmaceutical sector. In the later months of this quarter, the trend stabilized as the freight charges declined and the market had an ample number of inventories. However, a noticeable price dip was seen in the second quarter. The sliding demand, falling energy costs, and weak movement of the global economy pushed the price trend of sodium propionate into the negative region.

Analyst Insight

According to Procurement Resource, the price of sodium propionate is estimated to showcase a falling trajectory as the demand from end-user industries is declining gradually, and the slowdown of the global economy will affect the market negatively.

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